IPO analysis of Sparsha Laghubitta Bittya Sanstha Limited; to be issued from 26 Falgun 2075 for Public. the issue will be remain open till 29 Falgun 2075.
Overview of the company
Sparsha Laghubitta Bittiya Sanstha Limited is a “D” class financial institution licensed by Nepal Rastra Bank. The Company was registered at office of Company Registrar on 2073/11/04. It was licensed by Nepal Rastra Bank on 2074/03/23. The company has been operating since 2074/03/29.
Mega Bank Nepal Limited and Janata Bank Nepal Limited are major institutional promoter Sparsha Laghubitta.
The registered office of the company is situated at Kaski, Pokhara – 26, Bijaypur.
Area of Operation 
The company is a 10 district Level Microfinance Institution.
Branch Extension
The company is operating through 20 branches.
Utilization of IPO Proceeds
The IPO proceed is projected to be utilized as follows;
- Animal husbandry & Agricultural Loan: NPR. 2,00,00,000.00
- Retail Business & Services Sector Loan: NPR. 40,00,000.00
- Small and domestic industry Loan: NPR. 29,63,000.00
Capital Structure
Authorized capital: 10,00,00,000 ( Rs.10 crore)
Issued Capital: 8,29,63,000 ( Rs. 8.29 crore
Paid up Capital: 5,60,00,000 ( Rs. 5.60 crore)
Promoter share (67.5%): Rs.5,60,00,000
Public share (32.5%: Rs.2,69,63,000
Board of director
- Mr. Pro. Dr. Sushil Bhakta Mathema – Chairman
- Mr. Ajay Kumar Misra (Janata Bank) – Director
- Mr. Manoj Khadka (Mega Bank) – Director
- Mr. Dr. Surendra Neupane – Director
- Mr. Megh Raj Gajurel – independent Director
(Composition of director: 4 directors from promoter, 2 directors from public and 1 director independent)
Management Team
Mr. Sujal Khadka – CEO
13 years of experience at various microfinance Company.
Financial highlights off the company
Balance Sheet
The company has planned to hike its paid up capital over 3 year by around 141%. This means investor can expect right share or bonus share from the company over 3 years. They have projected to improve all indicators like, reserve, Deposit, loan disbursement, etc.
Profit of Loss
The company is able to sustain at profit from the beginning of operation. The company has expected increase net profit to Rs.6.9 crore from 1.66 lakh over the 3 years. likewise, operating profit, net interest income, etc are to be improved over 3 year.
Like wise, Earning per share & new worth per share thereby.
Listing Range:
Probably listing will be within (Rs.100.39 –Rs. 301.17)
Allotment : As per latest allotment guidelines, only 25,200 applicants will be allotted with 10 units of shares. Chances of over subscription is high.
Microfinance sub-index chart
14 days RSI at 54, 5 days & 20 days moving average is below current index of 1412 points.
Recommendation: Apply
Demand for the stock of Mirofinance is high due to small number of stock.
